Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Provision for Income Taxes

The provision for income taxes consisted of the following for the years ended December 31, 2012, 2011 and 2010:

	2012			2011		2010
	(in millions)
Current provision:
Federal	$	708		$	732	$	786
States and Puerto Rico		61			62		63
Total current provision		769			794		849
Deferred (benefit) provision		(80	)		22		(199	)
Provision for income taxes	$	689		$	816	$	650

Provision for Income Taxes Using Federal Statutory Rate

The provision for income taxes was different from the amount computed using the federal statutory rate for the years ended December 31, 2012, 2011 and 2010 due to the following:

	2012			2011			2010
	(in millions)
Income tax provision at federal statutory rate	$	669		$	782		$	612
States, net of federal benefit, and Puerto Rico		27			35			31
Tax exempt investment income		(26	)		(25	)		(24	)
Nondeductible executive compensation		14			11			13
Other, net		5			13			18
Provision for income taxes	$	689		$	816		$	650

Principal Components of Net Deferred Tax Balances

Principal components of our net deferred tax balances at December 31, 2012 and 2011 were as follows:

	Assets (Liabilities)
	2012			2011
	(in millions)
Future policy benefits payable	$	246		$	179
Net operating loss carryforward		203			181
Compensation and other accrued expenses		174			95
Benefits payable		91			111
Deferred acquisition costs		37			35
Capital loss carryforward		13			13
Unearned premiums		11			11
Other		9			20
Total deferred income tax assets		784			645
Valuation allowance		(28	)		(28	)
Total deferred income tax assets, net of valuation allowance		756			617
Depreciable property and intangible assets		(465	)		(347	)
Investment securities		(265	)		(191	)
Prepaid expenses		(59	)		(49	)
Total deferred income tax liabilities		(789	)		(587	)
Total net deferred income tax (liabilities) assets	$	(33	)	$	30
Amounts recognized in the consolidated balance sheets:
Other long-term assets	$	12		$	46
Trade accounts payable and accrued expenses		(45	)		(16	)
Total net deferred income tax (liabilities) assets	$	(33	)	$	30